The historic $7.2 billion merger between Synnex Corp and Tech Data will be completed this September 1 It would give rise to the world’s largest IT distributor: TD Synex. For the first time in 30 years, Ingram Micro will be overtaken by the new juggernaut.
Announced last March, the combination of the two distributors will make it a titanic wholesaler of 22,000 employees for 150,000 customers, weighing in at around 60 billion in annual turnover, about $11 billion more than Ingram Micro.
Note that the new entity will be owned 55% by Synnex shareholders and 45% by Apollo Global Management, the investment fund that bought Tech Data in June 2020 for $5.4 billion. TechData’s current CEO Rich Hume will lead the new organization.
Michael Goldstein, CEO of LAN Infotech, an American MSP based in Fort Lauderdale, Florida, gave his take on the operation to our colleague from CRN. “It’s pretty amazing how the two companies worked to make this happen so quickly (…). I guess they want to start the fourth quarter with a bang”. And to add: “Tech Data-Synnex is now the number one global distributor. It will certainly provide us with new opportunities (…). It will be interesting to see how this merger will change the distribution landscape.”
“Rich Hume is one of the best leaders in business”said Robert Venero, CEO of Holbrook, another supplier based in New York and interviewed by CRN. “I am confident that Tech Data-Sinex will be able to put together a credible distribution strategy against Ingram and all other distributors. Rich did not make this decision to lose market share and isolate the channel. He took it on to help grow the company and work better with the distributor community.”